The crisis at Ansett Holdings - the parent of Ansett Australia
Airlines, which has gone into receivership - could leave a large
dent in forward accounts for IBM Global Services Australia.
The airline's troubles have come to a head mid-way through at least
one long-term outsourcing contract with IBM GSA.
In 1997 Ansett agreed to pay IBM GSA an estimated A$100m (£35m) to
provide data centre services until 2007. The deal included
mainframe and midframe computer services, data communications and
systems software, but not database administration.
In a separate nine-year, multi-million-dollar pact, Ansett also
turned over management of 6,000 desktop systems to IBM GSA. Under
this arrangement IBM supplied personal computer repair,
installation and maintenance services as well as LAN server support
and help desk facilities. The contract was later transferred to
another supplier when Air New Zealand took over Ansett.
With Ansett now facing dismemberment, so do those contracts. IBM
GSA would not comment on the situation, but outsourcing industry
executives said the company is likely to rank as just another
unsecured creditor in terms of collecting any monies owed by
Ansett.
While outsourcing contracts include provisions for termination if
the customer goes into bankruptcy, there is little allowance for
compensation claims. Normally, the outsourcer has invoiced in
advance so there is money on its ledger that represents a
liability.
In addition, the outsourcer has substantial obligations such as
long-service leave and termination payments to staff working on the
contract. In the case of Ansett, about 45 data centre personnel
were involved when IBM GSA took over operations.
Based on the total value of its booked contracts - reportedly
around £1bn - IBM GSA will also have factored in a risk percentage
representing its exposure to unforeseen circumstances.